HOUSTON - Freight Technologies Inc. (NASDAQ:FRGT), known as Fr8Tech, announced today a new contract with a leading global toy industry brand to provide logistics services in Mexico. The agreement builds on the company's existing services, which have been focused on over-the-road (OTR) logistics during peak seasonal demand periods. According to InvestingPro data, Fr8Tech, with a market capitalization of $328.2M, has shown strong momentum with positive returns over the past three months, despite trading at levels below its Fair Value.
Fr8Tech's Fr8App platform has been instrumental in offering secure and timely transport for the client's products across Mexico. The new contract signifies a continuation of the relationship, highlighting the platform's success in delivering reliable and cost-effective logistics solutions. With analysts forecasting 140% revenue growth, InvestingPro subscribers can access 10+ additional investment insights about Fr8Tech's growth potential and financial health.
Javier Selgas, CEO of Fr8Tech, commented on the partnership, stating, "This strong endorsement from one of the world’s leading producers of children’s and family entertainment products, serves as a powerful validation of how the Fr8App platform innovates and sustains logistics support in the evolving global marketplace."
The company's proprietary Fr8App utilizes artificial intelligence and machine learning to optimize and automate the supply chain process. Fr8Tech's suite of solutions also includes Fr8Now for less-than-truckload (LTL) shipping, Fr8Fleet for dedicated capacity services, and Waavely for ocean freight management.
The press release includes forward-looking statements regarding the company's future performance and the potential benefits of the new contract. While analysts anticipate sales growth, InvestingPro data indicates the company faces profitability challenges in the current year. These statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations.
The announcement of the new contract is based on a press release statement and does not include any promotional language or subjective assessment. It provides a factual report on Fr8Tech's ongoing business developments and its role in the logistics services sector.
In other recent news, Freight Technologies reported a 6.6% increase in revenue for the first half of 2024, totaling $8.1 million, and a 40% rise in gross profits year-over-year. The company's shareholders recently approved key proposals, including the election of directors and the ratification of the company's independent auditor, Marcum LLP. However, an analysis by InvestingPro rated the company's financial health as weak, reflecting a -34.1% revenue decline over the last twelve months.
Freight Technologies also announced a strategic one-for-twenty-five reverse stock split, following its successful regaining of compliance with the Nasdaq's minimum bid price requirement. In other developments, the company adjourned its 2024 Annual General Meeting due to a lack of quorum, falling short of the required 50% of the votes of the shares entitled to vote.
Freight Technologies has expanded its collaborations, partnering with Bayer (OTC:BAYRY) CropScience LP for truckload services and Amazon (NASDAQ:AMZN) Mexico for U.S.-Mexico cross-border shipping operations. The company also resolved outstanding promissory notes and convertible notes with Freight Opportunities LLC, strengthening its balance sheet. Furthermore, Freight Technologies launched its Transportation Management System (TMS), a digital command center for logistics teams. These are the recent developments in the company.
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